 "Pressure on US generics market drags Cadila Healthcare Q2 net")
Cadila Healthcare's net profit was down from Rs 634.7 crore in the same quarter last financial year while its total income dipped from Rs 2,020.1 crore in Q2FY16 to Rs 1,202.2 crore in Q2FY17.
On a consolidated basis the Group posted a net profit of Rs 337.6 crore for the quarter under review as compared to Rs 475 crore in the corresponding quarter last year, down 29%. Total income, however, increased marginally from Rs 2,414.9 crore for the quarter ended September 30, 2015 to Rs 2,427.1 crore for the quarter ended September 30, 2016.
Commenting on the results, Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) said, "Cadila Healthcare, posted results lower than expected on net profit and sales front mainly driven by pressure on the US generic market."
Angel Broking's analysis showed, the formulation business sales stood at (Rs 1,988 crore, up 3.2%YoY), mainly lead by the US (Rs 988.8 crore, 1.5% dip YoY), Indian Formulation (Rs 820.9 crore, a YoY growth of 8.8%), Emerging market Formulations (Rs 113 crore, a YoY dip of 3.2%) and Latin America formulations (Rs 65.6 crore, a YoY growth of 24.6%).
The other Business & Alliances(Rs 398.5 crore) showed an YoY growth of 4%, while Europe Formulations (Rs 55.7 crore, a YoY dip of 14.1%). The Consumer Wellness (Rs 111.9 crore, a 7.6%YoY growth), on the other hand, the Animal Healthcare posted a growth of 51% (Rs 122.5 crore, a YoY growth of 51.9%). The API business (Rs 83.2 crore, a YoY dip of 7.4%) and Alliances (Rs 25.2 crore, a YoY dip of 42.5%) saw a decline.